Open House Archives - Fort Myers Real Estate and Homes For Sale

The 2019 real estate market offers clues going into 2025 as to expectations and goals. Official numbers have not been released yet for 2024, but according to internal statistics complied by the Ellis Team, 2024 should end with about 13,506 single family homes closed in Lee County.

Back on September 4^th we predicted Lee County would have about 14,109 single family home closings based upon the current strength of the market at that time. It looks like we’ll come in about 600 units short of that prediction as the 4^th quarter worsened in Lee County.

Listings and Closings

We’d like to point your attention to two graphs. The first is the Homes Closed graph which shows the monthly closing levels of homes in Lee County. The darker blue line is 2019 and the lighter color blue line is 2024. We believe 2019 should be the goal for 2025 in terms of the number of sales and price changes. The second graph compares the inventory levels from 2019 compared to today.

In 2019 we had a maximum of 7,195 listings on the market in March. At last count, Lee County has 8,175 single family home listings on the market in Lee County. That is a 13.62% increase in listings versus 2019. We had 13,788 home closings in 2019. On January 9^th of 2024 we had 1,210 homes pending. This year we had 1,113 on January 7^th. Pending sales begin building this time of year, but we are about 107 behind 2019 levels, so we have some catching up to do to hit 2019 levels.

Is 2019 Real Estate Market Realistic?

Unless things change, 2019 may be aspirational, but a lot can happen in a year. Interest rates could come down, although that looks less likely. Interest rates are not likely to drive the SW Florida real estate market in 2025. The primary driver of real estate in 2025 will be supply and demand, and pricing. Sure, we’ll look for economic changes, changes in tax policy, and any companies looking to relocate to SW Florida. Absent any breaking news or worldwide market conditions, 2019 should be our goal.

Let’s look at what prices were in 2019. Median prices were flat and ended the year slightly less than where they started. In January median home prices were $264,498. They ended at $262,000 in December. If 2019 is the goal for 2025, the hope would be for median home prices to hold steady, if not lose a little. Keep in mind, we have 13.62% more inventory than 2019 and it’s still growing. Mortgage rates were about 3.94% in 2019. Today they are in the low 7% range. We have some significant headwinds going into 2025 that were not present in 2019. The real estate market was just revving up for a run in 2019 after tax changes went into effect.

Today the US is working at extending those tax cuts, but our nation is in about $36 trillion worth of debt compared to $22 trillion back in 2019. The bond market is not as forgiving currently as back then because we’ve racked up so much debt.

Trust a Professional

If 2019 is truly our guide, we have many more stats and analysis we can share with clients. Give Sande Ellis or Brett Ellis a call at 239-310-6500 and we can discuss your goals and strategies to achieve them in 2025.

The Ellis Team knows the market, and we have strategies and marketing that make a difference. With so many agents leaving the business, the time is now to hire a real estate professional. Always Call the Ellis Team at Keller Williams Realty!

Ellis Team Weekend Open Houses

Call for Dates and Times 239-489-4042

Regularly we report the overall single family home inventory for the county, but today we want to break down the Lee County Florida housing supply by area.

In November we reported an overall month’s supply of inventory of 5.9 months. Today the overall Lee County single family month’s supply stands at 6.84 months, so it has gone up substantially in the past month.

Lee County Florida Housing Supply Best Market

Inevitably, people ask what the month’s supply of inventory is in the area they live in relative to the county overall. Today we are breaking it down by area. As you can see from the graph, North Fort Myers is doing the best at only 5.09 months.

The area hit hardest in the market right now is Fort Myers Beach with an almost 2 year of supply of homes on the market. The outer Islands are next at over 1 year of supply. This tells us something is going on at the beach and on the islands. Repetitive flooding and the cost of cleanup is the most likely issue on many of these homes followed by the high cost of insuring these homes.

Hurricane Ian hit over 2 years ago, and we’ve had some flooding events from Hurricanes Helene and Milton. While offshore, these past two storms did bring onshore water rise. Combining cost and hassle of cleanup with insurance costs has caused many to leave the area or relocate inland.

Fort Myers and Bonita/Estero also beat the overall county numbers. Cape Coral was higher at over 7 months’ supply, but not as bad as I was expecting. For the most part, most areas are between 5-7 month’s supply except for the beach and the islands. A balanced market is considered at 5.5 months’ supply and anything over that is considered a buyer’s market. Anything under 5.5 months is considered a seller’s market. North Fort Myers takes home the prize of being the only seller’s market in Lee County.

This brings home the point that all markets are local. What is happening in other states, counties, or even other areas of town don’t always reflect what is going on at the local and hyper local area.

Buying or Selling

When you are buying or selling, it pays to know what the market is doing where you are. Hiring an expert that studies the market is key, even down to the subdivision level. Other useful tools are www.LeeCountyOnline.com and www.SWFLhomevalues.com. LeeCountyOnline.com allows buyers and sellers to see all the listings and save searches so that new or changing listings are emailed directly to you. Some of the national portals are missing some of the listings, and they don’t have all the search abilities you do with this website. We also love the neighborhood market reports as well.

Swflhomevalues.com provides an instant online home value. Better yet, it allows you to track that value over time. In this way, you can see how a home is doing every month over time. This tool adds perspective on how the market is affecting that home’s value.

Our team has other useful tools, but these two are convenient and allow customers to gather a lot of information on their own without talking to anyone. You can also do it at 2AM when you can’t sleep.

We are not trying to get out of talking with customers. Sande and Brett love talking with people about their situation and ways we can help them accomplish their goals. We also know many people enjoy information before planning, so we like to provide that as well. When the time comes to buy or sell, we hope you’ll think of the Ellis Team at Keller Williams Realty 239-310-6500

Good luck and Happy Holidays. We’re here to help if you need us.

Ellis Team Weekend Open Houses

Today we would like to introduce the inventory sales gap metric for Lee County Single family homes. This metric measures the difference between the available single family home inventory versus the pending sales.

Inventory Sales Gap Metric

It is entirely possible to have rising inventory and rising sales. Imagine a low inventory market where virtually all the homes that enter the market go pending. In this case, the inventory sales gap metric is very low. As more homes come on the market, more go pending because demand from buyers is high. We saw this happen in 2022 and some weeks in 2023.

When pending sales exceed new listings entering the market along with homes coming back on the market, the gap lessens. This new graph shows in a different way than our supply-demand graph what the gap looks like. Both of our graphs help identify in an instant the health of the market.

As you can see from the graph, the inventory sales gap metric is widening. This means that the gap between listings and pending sales is widening. Currently, single family home inventory is rising and pending sales are flat. The good news is that we are seeing a slight uptick in new pending sales except for last week, which dropped by 1 home.

Ellis Team Current Market Index

The current market index is the third indicator our team uses, which accurately predicts the forward direction of prices. The current market index is still rising, which is not a good indicator for future prices. The index is the highest it has been all year. We’re going to be keeping an eye on new listings, new pending sales, and closings for the next 6 weeks. It will be fascinating to see how many new sellers decide to enter the market and how buyers respond.

Buyers seem to be responding. Showing activity is picking up and the phones are ringing. Many experts are predicting interest rates may not fall much in 2025 and could stay in the 6-7% range, which is average over time. Once buyers’ expectations for rates to decline go away it could spur motivation to buy sooner. It is possible the index could reverse course if buyers turn on in season.

The real question becomes what happens in January? Are there more shadow sellers waiting to place their property on the market? How does that number compare to the buyers looking to purchase this season. The forward direction of the real estate market feels like a college football playoff game. The winner will be decided in the trenches. Whichever side gains the most ground will determine the future of real estate prices in the next few months.

Selling?

If you’re thinking of selling, you need a team with marketing and experience. Many of our properties are receiving offers. Ellis Team listings receive more exposure than average listings, and our experience is second to none. If you’re thinking of selling, call Brett or Sande Ellis 239-310-6500 or visit www.SWFLhomevalues.com for an instant free online home value. Of course, Sande or Brett will be glad to verify if the estimate looks correct.

Good luck, and Happy Home Selling!

Ellis Team Weekend Open Houses

Open House Sunday 12-3 PM

11830 Bayport Ln Unit 2304 Fort Myers FL 33908

Open House Sunday 12-3 PM

2304 NE 13th Ave Cape Coral FL 33909

Since touring homes now require buyers to sign an agreement before showings, we thought it would be nice to cover real estate buyer consultation topics agents should address with buyers before they sign an agreement.

A real estate buyer consultation is a comprehensive meeting to educate and discuss several important matters in the home buying process. Let’s talk about some of them.

Real Estate Buyer Consultation Topics

Will buyers pay cash or financing? If they are financing, what credit score do they need? How much will they need for down payment? How much are closing costs? Is the escrow amount the same for cash offers as financed offers?
What is the process? How long does it take? Is a home inspection required?
Should we use a standard contract or an as-is contract? What are the advantages of each?
What happens if the home fails inspection?
What happens if the home does not appraise?
What will the homeowner’s insurance cost? Can this be found out before placing an offer? Are there ways to save on homeowner’s insurance?
Is flood insurance required? If so, how much is it? Are there ways to save on flood insurance?
How much home can I afford?
Is the HOA fee included in the loan qualification process?
Can my agent get access to discussions an HOA has been having about future costs to be levied?
What will an agent charge me to work with me?
Are sellers still paying the commission?
What if I find a For Sale by Owner myself?
What website has access to all the listings?
Is it a Buyer’s market or Seller’s market?
What’s really going on with interest rates?
How do we make my offer look better to the seller?
Should I use an agent when working with a builder?
What questions should I be asking about the HOA/Condo?
Has the home flooded in the past?
What could cause my home insurance to be cancelled?
If I intend to rent out the home, what are the rental restrictions?
What are pet restrictions?
Is a solar loan assumable by the buyer?
What home improvements pay off when I go to sell?

Upfront Knowledge

This was just a quick list of 25 items an agent could discuss with you in your consultation. Of course there are others. Ellis Team agents want to know more about you and what the home should do for you. Depending on your answers, more questions could arise.

The main thing is we want to educate and inform our buyers how the process should work, and cover items that typically arise in a transaction. Or course, when surprises happen, we are with you every step of the way to discuss your options.

Buyers should know upfront how much they can afford and how much a home is going to cost. Every home eventually needs maintenance and repair, so it’s best to evaluate a home’s current condition before making a purchase decision.

Set Expectations

When expectations are set up front, decisions are easier when the facts present themselves. Too many buyers are surprised by facts, then paralyzed by fear of making a bad decision because they hadn’t contemplated that situation. Education on the front end prepares buyers and makes new information an easier decision, because it was addressed already. It’s impossible to educate every buyer about everything that could possibly happen. This is why we stand as your partner to help you through the transaction. It is beneficial, however, to cover the main things we see repeatedly.

Lastly, the real estate buyer consultation is your chance to learn and ask questions. The answers will be invaluable to your decision. You’re not just buying a house. First, you’re hiring an agent. Secondly, you’re using that agent to help you buy the best home for you, at the best terms for your family.

If you’d like to speak with us, we can be reached at 239-489-4042. Or visit www.LeeCountyOnline.com to search the MLS like a pro. Either way, the Ellis Team at Keller Williams Realty is here to help you.

Good luck, and Happy House Hunting!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

11056 Sea Tropic Ln, Fort Myers, FL 33908

Open House Sunday 12-3 PM

7674 Bay Lake Dr, Fort Myers, FL 33907

Open House Sunday 12-3 PM

14386 Reflection Lakes Dr Fort Myers, FL 33907

SW Florida listing counts headed higher in the past week. Over listings rose by almost 400 units as single-family homes and condos shared the rise in inventory.

As listing inventory rose this past week, pending sales declined, which is a double whammy for the local real estate market. To be fair, America has been in an election hangover waiting for results.

Post Election Market

We went back and looked at local real estate inventory the last time Trump was elected. This data might deliver clues on what to expect this time.

Listing inventory in SW Florida remained constant until the Fall of 2019. Trump became president in January of 2017. It took about 2 ½ years for his economic plan to take effect. We also looked at local home prices back then. It was roughly Fall of 2019 before they started rising as well.

This tells us two things. Home inventory levels are a good measure as to where pricing will go. Secondly, new economic policies take time to take effect.

Speculation

Some speculate that Trump will be smarter this time and hit the ground running. If his policies are enacted sooner, their effect could take place sooner. Of course, things are different this time around. Our national debt is over $35 trillion and climbing, inflation roared, and interest rates tripled in less than 4 years. Will the president’s policies work with these new conditions? Will he be able to execute every financial option he’d like to because of the debt and interest rates? We’ll be watching to see if the effects work faster or slower than last time.

Slow Your Roll

These are all questions to be answered over time. Trump has proposed ending the cap on SALT deduction. This would help real estate in high tax states like CA, IL, NY, NJ. Those high tax states were responsible for sending many residents to Florida. The high taxes will remain, but the deduction might slow the flow of migration to Florida from these high tax states. This could affect demand in Florida, which would limit price increases.

SW Florida has excellent supply. With listing counts headed higher, we do not need demand to drop off radically. We believe many will still choose to migrate to Florida because of the weather and tax advantages. Allowing a higher deduction for high tax states may keep some there is all we are saying.

The Fed

We are watching interest rates moving forward. The Fed just reduced another 1/4%, but so far the bond market hasn’t liked it. Bond rates have gone up about .8% since the Fed has lowered 3/4%. In fact, many on Wall St are worried the Fed may have to raise rates in 2025 due to the economy doing better and high debt. This would essentially be egg on the Fed’s face because it would mean inflation is not under control.

The worst thing a Fed can do is lower rates before inflation is under control. We saw this back in the 80’s when the Fed was forced to start raising rates again. It threw us into a double dip recession. The Fed was wrong about transitory inflation, and they may have been wrong about lowering rates too soon. The bottom line is, rates may not come down as fast as people thought in 2025. We may need lower taxes and lower cost of oil to help the economy out, or risk recession.

The next year will be fascinating to watch. Many economic conditions will be in play and depending on what the new policies are moving forward and how quickly they take effect will shape which direction our real estate market moves.

Either way, we’ll help you keep track of what is really going on in the real estate market. You can always call Sande or Brett Ellis with Keller Williams Realty 239-310-6500 with your questions, or get a value for your home online at www.SWFLhomevalues.com

With inventory high, who you hire matters! Go with experience, and marketing! With listing counts headed higher, and we have no idea how many more may enter the market in January.

Good luck, and Happy Selling!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

10813 Dennington Rd, Fort Myers FL 33913

Bridgetown Open House — Pool Home on Lake

Open House Sunday 12-3 PM

4768 Crested Eagle Ln, Fort Myers, Fl 33966

Live Fort Myers Beach Webcam

Pre-election real estate showing activity is down 32.5% from last year. Is the decline in showings this year due to the elections, or is something else going on?

As a real estate professional, one of the top objections we are getting from buyers and sellers is they want to wait until after the election. We hear this objection every 4 years, but this year more people are saying it.

Real Estate Showing Activity Down 32.5%

We studied the first 28 days of October 2023 and compared to October 2024. Sure enough, overall showings are down 32.5%. The interesting part is both ends of the price ranges are being hurt. The luxury million dollar plus homes have been hurt the worst, down 72.22%. The $200-$300k range is next, down 56.09%. Showings are down in every price range.

If showings are down solely due to people waiting until after the election, it would stand to reason that showing activity will pick up in the weeks following. I hope they do, but something tells me there is more to the story.

Interest Rates

Interest rates have been rising, up about .75% since the Fed lowered rates. This could influence showings. Consumer confidence in the economy and the future could also have an effect. Until people know the direction of the economy, they may wish to hold off large purchasing decisions.

I believe it’s a sense of loss of control. People no longer feel like they control their own future. The government plays a bigger role, and people are uncertain which track we will take going forward. In a way, the future will become clearer to more people, and maybe they can move on from their current state.

Of course, half the country will be shocked either way. It may take a month or two for reality to set in. After that, real estate activity should go back to normal objections and motivations.

Success Going Forward

No matter who wins the election next week, one thing is clear. The Realtor you select to buy and sell with makes all the difference. Your vote next week is important. The Realtor you select is too. When selling, marketing is key. What will your Realtor do to make your home stand out? Inventory is much higher, and still rising. Pending sales have been declining. Selling in today’s market requires more marketing than ever.

Marketing Muscle

The Ellis Team has some new marketing that may help. The Ellis Team still advertises online, in print, and with national presence using Gannett, the News Press, USA Today, as well as Google, Bing, Facebook, Instagram, our Blog, Keller Wiliams, and all the other tools to create maximum exposure. Our Team continues to operate www.LeeCountyOnline.com which is SW Florida’s premier local search site. We’re adding to this lineup with some additional muscle. If you’re in the market to sell, you definitely should talk to us. 239-310-6500

Buying

The Realtor you choose to work with on the buying end matters now too. Negotiations are more complex with the new settlement guidelines, and some Realtors don’t have the experience or understanding to negotiate several issues at once. Brett, Sande, and our team can help with that as well. Before you make a real estate decision, consult with the Ellis Team at Keller Williams Realty. Who you hire matters.

Good luck, and Happy Selling! And don’t forget to vote.

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

11220 Caravel Cir Unit 110, Fort Myers, FL 33908

11220 Caravel Circle Unit 110, Fort Myers, FL 33908 — Open House Saturday 12-3 PM Cinnamon Cove

Open House Sunday 12-3 PM

7674 Bay Lake Dr. Fort Myers, FL 33907

7674 Bay Lake Drive, Fort Myers, FL 33907 — Open House Sunday 12-3 PM Reflection Lakes Fort Myers

Open House Sunday 12-3 PM

14386 Reflection Lakes Dr, Fort Myers, FL 33907

14386 Reflection Lakes Drive, Fort Myers, FL 33907 — Reflection Lakes Fort Myers Open House Sudnay 12-3 PM

Open House Sunday 12-3 PM

13916 Lily Pad Cir, Fort Myers, FL 33907

13916 Lily Pad Circle, Fort Myers, FL 33907 — Reflection Lakes Fort Myers Open House Sunday 12-3 PM

Single family home seller price reductions average 3.21% since June. This past week they averaged 2.88% while the week prior averaged 3.65%

We also track how many homeowners are reducing their price each week. Last week we had 483 reductions compared to 604 the week before. The week of April 16^th was the highest with 911 single family homes in Lee County reducing their price.

Data

What does all this data mean? With approximately 6 or months supply of homes on the market, depending on price range, more homes are coming to the market than selling. Homeowners are competing against other sellers for the best buyers. If a seller brings their property to market at a price the market accepts, it should sell. If the market rejects the price, sellers are choosing to adjust to the market because they wish to sell rather than keep their home.

Of course, some sellers would rather keep their home if they don’t get a price they want. That’s a nice position to be in. However, sometimes keeping a home and watching the prices go down can be disheartening, even for those that don’t have to sell.

Stock Market

Take the stock market for instance. Most people who have retirement accounts don’t need to sell. They’re investing for the long haul. Just the same, people don’t like investing in stocks that aren’t performing to their needs. In these cases, people typically sell and adjust their portfolio with investments they believe better suits their needs. They don’t need to sell, but they choose to sell and invest in something else.

Homeowners should not sell just because their home value is going down. Holding onto a property that no longer serves your needs does not always make sense either. Some people hold onto a property they no longer want until its value goes back up to a desired level. However, the property they would replace the underperforming property with might also go up, wiping out any advantage of holding a property that no longer suits their needs.

Emotional Decision

Real estate more than stocks becomes an emotional investment. People live in houses and build memories, so selling isn’t as easy as unloading a stock because of the emotional ties. It’s easier to make a business decision with stocks at times than it is with real estate.

Real estate has advantages though, because unlike a stock, you can live in a home or rent it out. If the price drops, you can choose to stay in the home, especially if you cannot afford to sell. Some people wouldn’t qualify for a new mortgage, so it’s wise to stay where they are until their financial situation changes.

Consult with a Professional

The Ellis Team at Keller Williams Realty have consulted with thousands of homeowners over the years. We can help you evaluate your options from an objective level and point out the pros and cons of making a move. We have resources that may help you and may think of things you haven’t considered. Our job is not to sell you but work with you to find a solution that makes sense for your family, even if that means staying for a while.

Give Sande Ellis or Brett Ellis a call 239-310-6500 and let’s talk. If you do decide to sell, we can help you decide on a pricing strategy. Our marketing plan is fantastic, and our family working with your family is a winning team! Or track your home value online at www.SWFLhomevalues.com. We’ll keep tracking the seller price reductions average and monitor when this number changes significantly, hopefully for the better.

Good luck, and Happy Selling!

Ellis Team Weekend Open Houses

Open House Sunday 12-3 PM

4768 Crested Eagle Ln Fort Myers, FL

Open House Sunday 12-3 PM

2304 NE 13th Ave Cape Coral, FL

Local housing inventory supply declined slightly in September, down from 5.39 months in August. Let’s breakdown which price ranges went down and why.

Housing Inventory Supply Declined

Everything $600,000 and up declined in inventory supply this past month. Sales went down in each of the three price ranges, but listing inventory declined even more. This tells us that more sellers simply took their homes off the market rather than sell in today’s market.

The $500k-$600k market increased in supply ever so slightly. Closed sales remained the same while listing inventory went up by four homes.

Best Performing Price Range

The $400-$500k market declined in supply. In this case, listings went down, and sales went up. This is the only price range on the chart that can make that claim.

The $300-$400k range saw listings jump by 105. The good news is sales jumped 66 to help offset some of the increase.

Worst Performing Price Range

The less than $300k range saw an increase in listings and a decrease in closed sales.

Based on these statistics, we can say the best performing price range this past month was in the $400-$500k range. The worst performing range for the month was the less than $300k range. If you are a seller in either of these two ranges, you might be feeling gratitude or pain.

In general, lower priced homes are more sensitive to external market conditions. In July, 36.6% of homes sold locally were paid for in cash. This means that 73.4% were financed.

The Fed

The Fed has purposely raised interest rates to cool the economy. They explicitly said they had to cool the job market to tame inflation. Statistics have shown they were able to cool the job market. The hope is the Fed will begin lowering rates starting this month and into the Fall. We could be dealing with a slumbering labor market into next year as lower rates will take time to work their way through the economy.

Shadow Inventory

Remember all those sellers that took their property off the market? How many of those will come back on the market in 2025? We just do not know. We suspect if the real estate market were to ever heat up in the next few years the shadow inventory would present itself and tame price appreciation.

Interest ratesWe are not expected to drop fast. If the Fed does drop rates fast, it means our economy is in worse shape than predicted, and this would not help the real estate market.

Thinking of Selling?

If you’re thinking of selling, Always Call the Ellis Team at Keller Williams Realty 239-310-6500. Sande and Brett are here to answer your questions. Or visit www.SWFLhomevalues.com to get an instant value on your home and track it over time. The sooner you start, the more data you will have.

Thanks for Voting

Thanks for voting the Ellis Team the Top Team in Fort Myers, and the Best Agent in Cape Coral! We appreciate the confidence News Press readers place in us, and we are grateful.

Good luck, and Happy Selling!

Ellis Team Weekend Open Houses

Open House Saturday 12-3 PM

914 SW 12th Terrace Cape Coral, FL

Waterfront pool Home Cape Coral — Heated Pool waterfront Home in Cape Coral

Open House Sunday 12-3 PM

2552 Keystone Lake Dr Cape Coral, FL

Open House Sunday 12-3 PM

26236 Colony Rd Bonita Spring FL

Imperial Harbor Furnished Home — Furnished Home in Imperial Harbor

Local home prices slipped 5.3% from last year, down to $395,000. Median home prices were $417,000 a year ago and were $400,000 last month. What has caused home prices to slip in SW Florida?

Inventory

Inventory is up 77% over last year. Official numbers show 8,054 single family homes on the market this year versus 4,545 last year. And this is after many sellers took their home off the market and rented them.

New Pending Sales

While this number dropped .5% from last year, it’s actually not as bad as it could have been. In fact, pending inventory right now is up. We’ll see if this holds, or if some of these deals fall out due to insurance or inspection concerns.

Interest Rates

Interest rates today are about 1% lower than they were a year ago. Additionally, many sellers have been paying for interest rate buydowns for the buyer which has helped home sales. With falling interest rates there is rising optimism buyers may be able to afford to get back into the home buying business and may become more motivated. Of course, this assumes they keep their jobs.

Months Supply of Inventory

Inventory supply has swelled to 7 months officially. We calculated it at 5.39 months, but our MLS does not have every single listing. Believe it or not, some sellers will list their home with Realtors from outside of the area and they use their own MLS. Sellers should ask which MLS their home will appear on and make that part of their contract, but that’s another story.

Interesting Trends

The Ellis Team is noticing some interesting trends developing in the resale market. Keep in mind, when official numbers are released, they are always a month behind, and it pays to know what is happening in the moment. We’ll be watching these trends the next few weeks to see what impact they will have on the market.

Thinking of Selling?

If you’re thinking of selling your home, now would be the time to call Sande or Brett Ellis. We will share our inside market statistics, so you know before the public does what the market is doing and how best to react. Imagine having a month jump on the stock market? Would that affect your decision on the stocks you bought and sold, and the timing? You can have that same advantage In the real estate market.

Marketing

Having a jump on the market is beneficial, but so is hiring the best agent with the best marketing. Pricing your home correctly is important, but so is marketing. Any Realtor can list a home, but the great ones get your home sold for Top Dollar. Always call Brett or Sande Ellis 239-310-6500 to see how much we can get for your home. Just because local home prices slipped doen’t mean they’ll stay where they are. The market is always on the move.

Instant Online Price

Of course, you can also try our instant online pricing tool at www.SWFLhomevalues.com Our system will track your home’s value over time, even if you’re not ready to sell today. People love the tracking tools. While we have one of the best online tools out there, we still recommend validating the value with Sande Ellis or Brett Ellis if you’re considering selling. You wouldn’t want to leave money on the table based upon a computer valuation. Nor would you want to overprice it as well because the computers were wrong.

Experience

Due to recent industry changes, experience matters more than ever. Be sure to ask about commissions and how they are being handled, and which form the brokerage you choose is using. Unfortunately, many buyer agents are not fluent in the changes and need an experienced listing agent to help guide them. You can’t hire an inexperienced listing agent and expect to get over the finish line in this market.

Good luck, and Happy Selling! We’ll keep an eye on the market for you. Just call us when you’re ready!

Ellis Team Weekend Open Houses

Open House Saturday 9am – 3pm

914 SW 12th Terrace Cape Coral FL

Open House Sunday 12-3 PM

10813 Dennington Rd Fort Myers FL

Feautured Home of the Week

If you’ve been following our column, you’ll know that we’ve been writing about housing inventory levels falling since April. After more research we learned about rentals affecting housing resale inventory supply.

According to a leading rental agent, rent prices have been down 35% in the last three months. He mentioned there are 176 single family homes in Cape Coral alone that came on the rental market. Because he has conversations with his clients, I asked him what is driving the rush to rent their homes.

Rentals Affecting Housing Resale Inventory Supply

The rental agent said many have tried to sell their home and could not, or just do not like the resale prices today, so they’ve decided to rent instead. This caused a rush of rental homes to enter the market, and some are still asking for 3 month ago rental prices.

Like the resale market, rentals are price sensitive. Whether you are renting or selling, you must price your home according to market conditions. For those that choose the correct rental price, those homes are rented within four to six weeks. For those owners that overprice their rental, it’s taking three to four months to rent their home. Presumably it takes longer for the owner to realize they are overpriced, and they eventually reduce rent until it rents. Our conversation didn’t get that far, but why else would it rent for more down the road?

Rent Vs Sell

There are three reasons why a homeowner would rent versus selling. First, they emotionally want what their home used to be worth and decide to wait until the market recovers to that point. Secondly, they may owe more on the home and need to wait until market recovers to pay off the loan. Third, they may decide it’s a good investment and would like to keep it. Perhaps they have a low interest rate and can afford to keep it until rates fall again.

We may never see rates get below 3% again. If they do approach sub 4% it probably means the economy isn’t doing well and the Fed is trying to pump the economy. If this scenario occurs, home prices wouldn’t be doing well.

Economic Projections

We just sat through an economic projection of three possible scenarios. The first was no recession, the second scenario was a normal recession, and the last scenario was a banking recession. Let’s pray for no recession or or a mild one because the outlook for home prices and sales time isn’t pretty if we hit a normal recession or banking recession.

Buyers and sellers should prepare for rates to come down, but it will take awhile, and real estate will lag while they do. Recovery will be slow. If we enter a normal recession, home prices could be stalled or fall for 3+ years. And if we enter a banking recession, unemployment would rise dramatically and the economy could get ugly. We last saw this scenario in the Great Recession and savings and loan crisis.

The difference is today our country is in so much more debt than we were in 2006. Latest odds have the US entering a recession at about 70%. The definition of a recession is negative growth for two straight quarters, so we won’t know we’re in one until 6 months in.

Bottom Line

Real estate is moving, if it’s priced correctly. Those rentals will come back on the resale market one day, adding to inventory. For now, it might be a good time to sell while inventory is down. Of course, when all those rentals come back on the market, interest rates might be lower and maybe there will be more buyer demand to offset the increased supply.

We’ll keep watching the market for you. Always call Sande or Brett Ellis 239-310-6500 with your real estate questions or visit www.swflhomevalues.com to get your home’s price.

Good luck, and Happy Home Selling!

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